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Malaysia's Felda Global Ventures exploring China expansion

Mon, May 15, 2017 - 4:22 PM

Malaysian palm oil producer Felda Global Ventures Holdings Bhd said it had signed an initial deal with a unit of China's grain stockpiler aimed at expanding its palm oil supply and distribution network in its second biggest market.

PHOTO: REUTERS

[KUALA LUMPUR] Malaysian palm oil producer Felda Global Ventures Holdings Bhd said it had signed an initial deal with a unit of China's grain stockpiler aimed at expanding its palm oil supply and distribution network in its second biggest market.

The world's third-largest palm plantation operator said it signed the memorandum of understanding with Sinograin Oils, a subsidiary of state-owned China Grain Reserves Corp.

"We want to expand our business in China... With this MoU, we hope to extend FGV's distribution and logistics network in China through Sinograin's various strategic storage, processing and distribution facilities," Felda Global CEO Zakaria Arshad said in a statement on Monday.

The CEO also said Felda Global hopes to explore the opportunity to integrate the operations of its Chinese unit with Sinograin's domestic operations.